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by James Robertson.
Original Post: Pondering outsourcing?
Feed Title: Cincom Smalltalk Blog - Smalltalk with Rants
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Feed Description: James Robertson comments on Cincom Smalltalk, the Smalltalk development community, and IT trends and issues in general.
Outsourcing Deals Fail Half the Time because most companies lack data on how well internal operations stack up against so-called cheap, external competitors. Pointing to market research by Giga Information Group Inc. and others, Jason Schroedl, director of corporate marketing at newScale Inc., claims that more than 50% of IT outsourcing agreements fail for lack of comparative information. "You need to know how well your outsourcer stacks up against your internal offerings," he says, or you increase the risk of having an outsourcing deal collapse. For example, companies often discover that much of the money saved by sending work outside is eaten up by the costs of managing the outsourcer relationship. Also common is for the outsider to bungle the service quality.
So outsourcing to save money - without a really solid plan - is like flipping a coin to save money.
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